Bangladesh Bank has officially granted approval for Nagad Digital Bank Ltd. to establish the first full-fledged digital bank in the country. This significant development is expected to open up new opportunities for the digital financial industry to thrive.
The Letter of Intent (LoI) for the digital bank was handed over by Bangladesh Bank Governor Abdur Rouf Talukdar to Tanvir A Mishuk, the founder and managing director of Nagad Ltd. The digital bank, named Nagad Digital Bank, aims to bring banking services to people’s fingertips, especially those who face challenges visiting traditional banks for various reasons.
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Nagad Digital Bank will focus on financial inclusion by providing single-digit loans to individuals outside conventional business sectors without collateral requirements. The bank will also introduce small savings schemes and address the day-to-day financial needs of common people.
Tanvir A Mishuk stated that Nagad Digital Bank will initiate its services once all necessary formalities and preparations are completed. The central bank’s governor, Abdur Rouf Talukdar, extended his best wishes for the success of Nagad Digital Bank Ltd.
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Nagad has been a prominent mobile financial service provider in Bangladesh, serving over 8.5 crore customers and holding a notable market share. Over the past three years, Nagad has worked diligently to obtain regulatory approval to introduce digital banking services in Bangladesh, and now, with the green light from the Bangladesh Bank, Nagad Digital Bank Ltd. is preparing to take banking services to people’s doorsteps.
